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Analyzing Collection Float and Lockbox Benefits by John Vicente Balanquit is a document available to read on EtoBox.
What is Analyzing Collection Float and Lockbox Benefits about?
The document contains two cases analyzing collection float and the potential adoption of a lockbox system. For Float Simon Corporation, the collection float is 7.5 days or $65,000, and it would not be economically advisable to pay $16,500 to reduce float by 3 days given its 11% opportunity cost. For Eagle Industries, the lockbox system could make $108,960 available annually and would provide a net benefit of $99,960, so it should adopt the system.
- Author
- John Vicente Balanquit
- Language
- EN